Mse2019 Paper 133 [629315]

CONSIDERATIONS ON MANAGEMENT FOR
TECHNOLOGICAL ENTREPRENEURSHIP
Elena Izabela Popa1*, Amalia Furdui1,and Eduard Edelhauser1

1University of Petroșani, Universității Street, No. 20, Romania
Abstract. The study focuses on the idea that the variations between
countries regarding entrepreneurial activity and spatial structure of
economies could be the source of various efficiencies in disseminating
knowledge and economic growth . The study aims at developing an empirical
model for both entrepre neurial activity and agglomeration effects on
knowledge diffusion. The model is tested using cross -border data to measure
the level of entrepreneurship in each economy. I believe that, after
controlling the knowledge pool and R & D spending, both entrepren eurial
activity and agglomeration have a positive and statistically significant effect
on technological change in the European Union.
1 Introduction
In the study we will use a comprehensive data sample using the Global Entrepreneurship
Monitor (GEM) data. We will also make estimates on some alternative data samples –
countries in the European Union, Central and Eastern European countries and Romania to
see if there are some differences in terms of entrepreneurial determinants for different
countries/groups of countries .
At present, we are living in an accelerated transition period marked by complex and
profound transformations in all areas of activity. The extent of innovation is reflected
primarily in the high pace of the development of new products and technologies, but the
changes are not just about tangible things. Within organizations, innovation actions are
oriented towards management methods, organization and business configuration, which
contribute to the achievement of sustainable competitive advantages. The importance of the
new introduction activities can be explained from the perspective of changes in economy and
society, driven by increased competition, t echnical progress and, above all, the development
of technological entrepreneurship .

2 The conceptual framework on technological
entrepreneurship and the theoretical aspects of GEM (Global
Entrepreneurship Monitor)

*Corresponding author: [anonimizat]

Technology Entrepreneurship is at the heart for a number of important debates,
including those around launching and developing companies, regional economic
development, selecting stakeholders to take ideas in markets, and educate managers,
engineers and sc ientists. Unless a generally accepted definition of technological
entrepreneurship is established , technological entrepreneurship is an investment in a project
that assembles and distributes specialized and heterogeneous individuals to create and
capture v alue for the firm .
Entrepreneurship technology is a vehicle that facilitates prosperity in individuals,
companies, regions and nations. The technology entrepreneurship study therefore serves an
important function beyond satisfying intellectual curiosity. The field of technological
entrepreneurship is in its infancy compared to other areas such as the economy,
entrepreneurship and management. However, we are at a time when we can capitalize on the
perspectives contributed by previous work to create a cleare r definition of entrepreneurship
in the field of technology .
The distinctive features of technological entrepreneurship is linked with economic,
entrepreneurial and management areas. The proposed formal definition of entrepreneurship
in technology should prove valuable to add to our understanding of how entrepreneurship
works in a company that invests in projects that are interdepen dent with the progress of
science and technology . Global Entrepreneurship Monitor (GEM) is the world's best -known
entrepreneurial survey. Beginning in 1999 as a joint project between Babson College (USA)
and London Business School (UK), GEM is the world's richest resource for entrepreneurship
information, publishing a series of annual reports globally and nationally .[1]
In particular, the Global Entrepreneurship Monitor (G EM) report analyzes the factors that
determine the need for the opportunity and the mi xed motives of entrepreneurship. It focuses
on four main objectives :
1.measuring the differences between levels of entrepreneurial activity of different
countries,
2.determining the extent to which entrepreneurial activity influences the growth and
economic development of different countries,
3.identifying factors that determine the level of entrepreneurial activity
4.identifying policies that can lead to higher levels of entrepreneurial activity .
Global Report records entrepreneurship rates around t he world. The report questioned
entrepreneurs in different phases and assessed their characteristics, motivations and
ambitions, as well as the attitudes of companies to such an activity. It presents results based
on 60 countries that completed the Adult P opulation Survey (APS) and 62 countries that
completed the National Expert Survey (NES). The purpose of GEM reports is to inform
decision makers and practitioners about the multidimensional nature of entrepreneurship
across the world, to advance knowledge and guide decisions that could lead to creating
conditions for entrepreneurship to thrive.
Based on the data gathered through GEM studies, there are a few indicators of entrepreneurial
activity that can be calculated [7]:
1.the total of early -stage entrepreneurial activity (TEA) – the percentage of the 18 -64-year-
old adult population in the process of setting up a business
2.established business ownership rate – the percentage of the 18 -64-year-old adult
population who is currently t he owner of a fixed business
3.business interruption rate – the percentage of the 18 -64-year-old adult who has
interrupted a business in the last 12 months.
4.entrepreneurial Employee Activity (SEA) – the percentage of the 18 -64-year-old adult
population who, as employees, was involved in entrepreneurial activities.

5.Social Entrepreneurial Activity (SEA) – the percentage of the adult population aged
18-64 who engages in early -stage entrepreneurship with a social purpose

3. Models and data in the EU and Romania

The GEM conceptual framework, identified in 1999, as opposed to the conventional
national economic growth model (Fig .1), has shown the basic assumption that national
economic growth is the result of individual s ability to identify and take advantage of
opportunities in interaction with the environment. Using the results of GEM surveys over the
years, this initial conceptual framework has evolved.[1]
Fig.1. Conventional model of national economic growth
Worldwide, entrepreneurship is perceived as having a high social status. Two -thirds of
adults think it is a good choice for a future career and more than half of the active population
feels it has the ability to start a business – shows the Global Entrepre neurship Monitor report.
[3].
Entrepreneurial activities will be presented using organizational lifecycle approach
(setting up, new business, established activity, interruption) by adding perspectives on
entrepreneurial activity. The table shows the p revalence rate of entrepreneurial activity
throughout the life stages of a company, providing information on entrepreneurial dynamics
for each of the GEM economies grouped by region. [4]
In Romania, the start -up entrepreneurial activity rate (TEA) is 10.8% in 2015, being the
percentage of the active population who did something to start a business (raised money,
developed a business plan, etc.) or who already has a company up to 3.5 years old. This
GEM -specific indicator tends to decrease as the econom y grows. Romania ranks 2015 at the
middle of the ranking (ranking 30 among the 60 countries that participated in the GEM
project in 2015). As compared to 2014, Romania recorded a slight decrease of 0.5 percentage
points, but still exceeds the European aver age of 7.8% or the TEA of some countries such as
Hungary (7.9%), Poland (9.2%) or Bulgaria (3.5%). [7,8,9 ]

Fig. 2. Total early -stage entrepreneurial activity (TEA) in the GEM economies in 2014, by phase of
economic development ( where vertical bars represent 95% confidence intervals for TEA punctual
estimates )

Entrepreneurial activity in Romania, compared to other countries, is found in (Fig . 2).
We used the estimates from Global Entrepreneurship Monitor [2], the most recent year with
data available for Romania at individual level, because Romania is no longer part of the GEM
data base from 2015. Estimates are made using four data samples at individu al level: one
with complete global data, one with data only for Romania, one with data for CEE countries
included in the GEM database and one with all the European countries in the GEM
database. [5]
The indicators used in entrepreneurial behavior are: financial support, government
policies, entrepreneurial government programs, entrepreneurship education, research and
development transfer, the degree of openness of the internal market, access to physical
infrastructure, cultural and social norms .
Entrepreneurial behavior and attitudes in Romania can be seen in (Fig . 3) where
(Expert Ratings: 1 = highly insufficient, 5 = high enough). [3]. The most recent data is from
2015 because Romania is no longer appearing in the GEM reports after this period. It can be
noticed that Romania ranks between Levels 2 and 3 of Expert Ratings, an average level
compared to other member states EU .

Fig. 3. Entrepreneurial Framework Conditions (EFC)

We have used in the study the multinomial logistic model to estimate the equation
between different reasons for entrepreneurial intent and explanatory variables. In the case of
sub-indices of entrepreneurial intent, we used binary logistic models.
Logistic models were applied to 4 data samples, one with full data available in the GEM
database [1] one covering the countries of Central and Eastern Europe, one with the sample
of Romania and one with all EU member states covered by GEM. Estimates were also made
for each sample of 4 def initions of entrepreneurial intentions (as a dependent variable): total
entrepreneurship intentions, need -based entrepreneurship, opportunity -based
entrepreneurship and mixed -enterprise entrepreneurship .

Conclusions

Over the last four decades, technology entrepreneurship has become an increasingly
global phenomenon and is perceived as necessary for growth, differentiation and competitive
advantage of the firm at regional and national level. Technology Entrepreneurship is mainly
aimed at leaders and managers of small and large companies using technology.The main
function for technology entrepreneurship is to assemble a combination of specialized people
and heterogeneous assets in order to create value for the company th rough exploration and
experimentation .
Linking entrepreneurship to economic growth i s a longer -term perspective of economic
development (because entrepreneurs create new businesses, new businesses create new jobs,
offer a variety of products and s ervices to the population, increase competition, increase
productivity through technological change, and have a positive impact on individual life on
multiple levels – Schumpeterian point of view).The GEM report shows that entrepreneurship
rates also diffe rs in economies in similar stages of economic development -not all
entrepreneurial efforts seem s to have the same impact on economic development .

References

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